Burial insurance is for the living, not for the deceased. Typically, a person will purchase a whole life insurance policy that has a death benefit ranging from $5000 to $25,000. This policy is designed to be used for funeral or burial costs for either themselves or a family member. There are also family plans available.
What Is The Difference Between Life Insurance And Burial Insurance?
Burial insurance covers a one-time or short-term expense. It’s not an income replacement, nor is it for such things as buying a new house or going to school. It’s designed for the family members to pay for a funeral and the burial. It’s typically termed under the name “Burial Insurance” or “Whole Life Insurance”.
Many people purchase life insurance with the reasoning that they can later use it to make a large purchase such as a home or for college expenses. That is where life insurance and burial insurance differ. It’s simply designed as one-time assistance to help with the costs of burial or funeral expenses.
Is Burial Insurance Expensive?
Burial insurance premiums are usually paid weekly or monthly. Premiums are typically collected via a direct deposit or a paycheck deduction. On average, premiums are usually around $2 to $3 per week depending on the amount of the insurance coverage and the age of the person that will be using the policy.
Why Would Someone Want Burial Or Funeral Insurance?
The cost of a burial is expensive and to have that amount readily available upon someone’s death is one less thing for someone to have to worry about. By having burial insurance a person can plan for the unexpected and have the funds available regardless of how the person died.
Burial insurance is one less stress for the family of the deceased. Knowing that the money is available for their burial is one less burden. Many people don’t plan and have this amount available and the cost is only going to increase with time.
How Much Is A Funeral?
This is going to depend on what you’re going to have done. If you’re going to have the person cremated it’s going to cost far less than a casket burial. Keep in mind that the less you’re going to have done the less costly it’s going to be.
A funeral with a casket and burial can be upwards of $15,000 to $25,000 or more. Keep in mind that these costs include digging the grave (regardless of season), embalming the body (to prepare it for viewing), and a gravesite. There may also be other costs included for a graveside service and other miscellaneous services that may have to be rendered.
By contrast, a cremation with a nice urn and placement of the urn in a cemetery or crypt can be far less expensive at around $5000 or less depending on how expensive the crypt or urn is.
Regardless of whether cremation or a full-on funeral is planned<, it’s important to have the money available when you need it. By planning you’ll be prepared for anything.